USD/JPY - Daily Chart Levels & Patterns To Watch
Daily price action looks to be forming a head and shoulders with a defined neckline at lower trendline support. There has been 5 short term waves in the last intermediate bullish impulse from 104.317 to 111.687 giving a head at wave 5 around the major wedge trendline resistance. If the 5 waves hold up we are in wave c of the abc correction and wave 3 of the 5 wave shortterm downward impulse.
The right shoulder around 110.489 is a nice typical deep wave 2 pullback to 0.236 fib zones of the wave 1a correction. This is important because if price breaks down through the trendline, wave 3 is confirmed and we will be looking for a target around 1.618 fib at 106.235 zones. A wave 4 and 5 would consolidate the floor around the lower major wedge tredline support so the confluence would be there on multiple levels.
There are nice harmonics which have formed point C but both directions need confirmation for direction towards D and which one will play out. This is a very indecisive and interesting level for price action. A breakout of the wedge and a move up could happen due to the strength of the intermediate 5 wave bullish impulse. The abc correction can sometimes wedge into the snap with the extension of the impulse coming before the official pullback wave 2. But if this wave 2 pulls back and breaks down I will be expecting a deep move to 0.236 fib and lower trrednline support zones around 106.235 .
The Fibs and wedge pattern are major, so respect of those levels and continuation of the patterns is most likely. But don’t underestimate the power of such a bullish impulse so close to the tip of a major wedge. If it is not this time the breakout will happen there is only room for 1 more try. Frequently the breakout happens around this location of the wedge and does not wait to consolidate to tip. That in mind the fallout of the wedge if we get the pullback will be a something to look at. There is only room left in wedge to consolidate 1 more major wave.
Moving into this week and today I will be looking for closes above or below these major levels and watching for the patterns to complete, I have a short bias but don’t underestimate the bulls after such a beautiful major wave. I am using Tradingview for my trading journal, my views and study’s are my opinions and should not be taken as trade signals. I use this platform to create a record which I can review to continue evolving and adapting my charting systems. This is not trade advice or signals. So trade with care, peace and pips. Hope it helps and crush the markets this week traders!
- Grateful Chart Artist
The right shoulder around 110.489 is a nice typical deep wave 2 pullback to 0.236 fib zones of the wave 1a correction. This is important because if price breaks down through the trendline, wave 3 is confirmed and we will be looking for a target around 1.618 fib at 106.235 zones. A wave 4 and 5 would consolidate the floor around the lower major wedge tredline support so the confluence would be there on multiple levels.
There are nice harmonics which have formed point C but both directions need confirmation for direction towards D and which one will play out. This is a very indecisive and interesting level for price action. A breakout of the wedge and a move up could happen due to the strength of the intermediate 5 wave bullish impulse. The abc correction can sometimes wedge into the snap with the extension of the impulse coming before the official pullback wave 2. But if this wave 2 pulls back and breaks down I will be expecting a deep move to 0.236 fib and lower trrednline support zones around 106.235 .
The Fibs and wedge pattern are major, so respect of those levels and continuation of the patterns is most likely. But don’t underestimate the power of such a bullish impulse so close to the tip of a major wedge. If it is not this time the breakout will happen there is only room for 1 more try. Frequently the breakout happens around this location of the wedge and does not wait to consolidate to tip. That in mind the fallout of the wedge if we get the pullback will be a something to look at. There is only room left in wedge to consolidate 1 more major wave.
Moving into this week and today I will be looking for closes above or below these major levels and watching for the patterns to complete, I have a short bias but don’t underestimate the bulls after such a beautiful major wave. I am using Tradingview for my trading journal, my views and study’s are my opinions and should not be taken as trade signals. I use this platform to create a record which I can review to continue evolving and adapting my charting systems. This is not trade advice or signals. So trade with care, peace and pips. Hope it helps and crush the markets this week traders!
- Grateful Chart Artist